Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Mortgage lending growth at 20-year low

Options
  • 30-08-2008 9:21pm
    #1
    jetski
    Registered Users Posts: 820 ✭✭✭


    Friday, 29 August 2008 11:08
    Growth in mortgage lending dropped below 10% for the first time in more than 20 years in July, according to figures from the Central Bank.
    The bank said the annual rate of growth fell to 9.6%, the lowest since the end of 1987. The amount of mortgage lending increased by €964m in the month. The Central Bank said this was in stark contrast to the €2.4 billion increase in the same month two years ago.
    Total lending in the economy grew at an annual rate of 13.3% in July, a six-year low. Non-mortgage credit grew by 18.8% over the year, down from 20.2% in June.
    Central Bank figures also show that the level of debt outstanding on credit cards fell to below €3 billion

    http://www.rte.ie/business/2008/0829/credit.html


Comments

  • Options
    #2
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    And there were recent bull arrivals on this board saying all was fine and dandy in mortgage land when we see from the above that its abysmal.


  • Options
    #3
    Victor
    Registered Users Posts: 78,397 ✭✭✭✭Victor


    Thats still about €11bn a year in mortgages.


  • Options
    #4
    ZYX
    Registered Users Posts: 882 ✭✭✭ZYX


    Is it just me or does 9.6% rise in mortgages not sound like a huge amount. I would have expected mortgages to fall not rise. Can anyone explain this if house prices are falling and number of houses being bought is also falling?


  • Options
    #5
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    It's top-ups, switchers and re-mortgages ZYX. If we had stats breaking them down into the amount of buyers actually of homes, it would be alot clearer whats going on in the buyers market.

    Lots of people have taken out top-ups for buying that new car and furniture, that section has been exposed as one of the most wreckless in lending practices in the easy credit times. (all based on house values hitting the roof so banks 'thought' they were safe loans)

    All we can devise is that the numbers taking out any type of mortgage is way down on previous years(from IBF stats) and still falling along with the amounts they can take out.


  • Options
    #6
    Firetrap
    Closed Accounts Posts: 4,442 ✭✭✭Firetrap


    Thanks for clearing that up. I couldn't get my head around that stat.

    You do raise an interesting point though - there are no stats that clearly tell us what's going on out there. Obfuscation is the order of the day :rolleyes:


  • Advertisement
  • Options
    #7
    ZYX
    Registered Users Posts: 882 ✭✭✭ZYX


    gurramok wrote: »
    It's top-ups, switchers and re-mortgages ZYX. If we had stats breaking them down into the amount of buyers actually of homes, it would be alot clearer whats going on in the buyers market.

    Lots of people have taken out top-ups for buying that new car and furniture, that section has been exposed as one of the most wreckless in lending practices in the easy credit times. (all based on house values hitting the roof so banks 'thought' they were safe loans)

    All we can devise is that the numbers taking out any type of mortgage is way down on previous years(from IBF stats) and still falling along with the amounts they can take out.
    Still doesn't make sense unless tops ups have hugely increased ie by 100% or so. Why would that have happened?


  • Options
    #8
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    Some explanation here http://www.thepropertypin.com/viewtopic.php?t=12916

    Some breakdown here from Q1 '08 in comparison with previous years from IBF. http://www.ibf.ie/researchset.html

    Top-ups and switchers accounted for 53.5% of numbers of loans.
    Top-ups and switchers accounted for 40% of the values of loans

    Interesting to see all types of loans went down in number and value except switchers which nearly doubled in number and rose by 50%+ in value.

    Also, the numbers of people in Q1 '08 taking out mortgages for actual purchasing of homes(FTB, RIL, Movers) is HALF of what it was in Q1 2006, thats how bad it has got.


Advertisement